By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7If you find that your Bankruptcy case is being reviewed by the United States Trustee it is not necessarily a bad sign but it is something you will want to discuss with your lawyer. It might seem especially scary if the first you hear about it is a notice of a Rule 2004 Examination or… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7We have discussed the Means Test in detail in this post. “Passing” the Means Test is the key to qualifying for Chapter 7 Bankruptcy, which is a much better option than Chapter 13 for many people. It allows people to get in and out of Bankruptcy in a few months, with no 3-5 year payment… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Household size is an important factor in many consumer Bankruptcy cases. Most importantly, the Means Test figures are based on the size of the household so it is important in determining eligibility for Chapter 7 or Chapter 13 and in calculating disposable income to be paid in the Chapter 13 plan. It is also relevant… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7As discussed in more detail in other posts, to qualify for a Chapter 7 case most people have to “pass” the Means Test, which is based on your income for the six month period before filing. It is normally a straightforward calculation – add up all income you have received in the last six months… Continue Reading
By Scott Riddle Posted in Chapter 13Yes, it is possible to have too much debt for Chapter 13 but those are unusual cases. Unlike Chapter 7 cases, with no limit on the debt that can be discharged, Chapter 13 does have limits. Congress thought the process may be too cumbersome if an individual comes in with too much debt and they… Continue Reading
By Scott Riddle Posted in Chapter 7One basic principle of Bankruptcy is that there is usually no “marital penalty” and individuals are still able to file for Chapter 7 or Chapter 13 based on their own financial circumstances and not the separate finances of their spouse. In fact, even in a joint Bankruptcy case filed by spouses, there are still technically… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13In our overviews of Chapter 13 cases and Chapter 13 Plans, we used the term “Disposable Income.” Disposable Income is one of the most important components of a Chapter 13 case and Plan because that is the portion of your income that you have to contribute to the Plan (via the Chapter 13 Trustee) to… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13The primary difference between a Chapter 7 case and a Chapter 13 case is the Chapter 13 Plan. If you do not qualify for a Chapter 7 case under the Means Test, or you qualify but want to take advantage of benefits of Chapter 13 (such as lien stripping), then you will submit a Chapter… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7The Bankruptcy “Means Test” is a form that must be completed by most individuals filing for Bankruptcy. The Test is used in determining whether an individual or couple qualify for a Chapter 7 case or whether they have sufficient disposable income (or “means”) to pay something to creditors in a Chapter 13 plan. Importantly, the… Continue Reading
